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Employers will need to get more from every merit dollar spent and make sure that top performers are adequately rewarded. They will need to differentiate more between levels of performance when considering performance-based merit increases and be able to explain these decisions come review time. It is likely that good performers may get less of an increase than expected so that the top performers can be appropriately rewarded. Good performers near the top of their salary range may see no increase at all. [ Source - Salary.com ]